Microsoft's monopoly case is in court again. The judge declared that Microsoft does have monopoly behavior and the evidence is conclusive. In other words, Microsoft will face huge fines and is at risk of being forced to break up.
On this day, many investment institutions also discovered that the Nasdaq index actually exceeded 5,000 points. At this time last year, it was less than half. In one year, it had doubled!
So they saw that Microsoft was going to lose the lawsuit, and thought that Cisco, Dai Er and other companies that had business dealings with Microsoft would also be affected, so they decided to sell the stocks they held.
At this time, a trading operation crash occurred. Some major shareholders sold these constituent stocks at the same time, causing the Nasdaq stock index to fall instantly, falling by 5% that day.
Of course, there is also a relationship between Feng Yu and Feng Yu. Feng Yu also joined hands with Kirilenko and Fu Rongqi to sell the last few constituent stocks in their hands this year.
What makes Feng Yu and the others curious is that there seems to be another hand controlling these, because when they were short-selling the Nasdaq index, someone actually opened a position first, and they were very generous.
Yesterday, the Nasdaq stock index hit a new high, and some people were building positions at the high level. How were they sure that the Nasdaq stock index would fall
Unless, this person knew in advance the news of selling Microsoft, Cisco, Dai Er and other stocks at the same time.
So how energetic must this person be to be able to connect with so many large investment institutions
Feng Yu thought for a long time and felt that there seemed to be only one person who fit his guess, and that was Soros of the Quantum Fund!
Only Soros dares to make such a bold operation and can understand the trends of these large investment institutions. And short selling has always been Soros's favorite thing to do.
Feng Yu wasn't sure, but he didn't care either. He and his partners have already opened a large number of positions at 5,000 points. Although the leverage ratio is not high, judging from today's decline, panic selling will be even worse tomorrow and the stock index will fall even more.
The opening of Microsoft's monopoly case was just a trigger. When Feng Yu sold Microsoft shares last year, Microsoft's stock price stopped growing, but many other stocks were still rising crazily.
The most interesting thing is that most of the companies whose stock prices have skyrocketed are not yet profitable. Expenses are greater than income, that's it. The stock price has risen much more dramatically than companies with good profits such as Microsoft.
Those companies sell so-called ideas. As for whether they can be transformed into reality, everyone seems to be betting. Once you win the bet, you can get multiple returns. As for losing the bet, they never thought about it.
Even in the past two years, venture capital has been particularly fond of network technology companies, and the intensity of scrutiny has been continuously reduced. They all want to use this shareholder style to make companies go public and make a lot of money.
Some people also say that the selling of stocks by those companies has nothing to do with Microsoft's antitrust case, but is related to the fact that most of the companies in the just-announced statements of listed companies are losing money.
This has sounded a wake-up call to many investors. Just because a company becomes larger does not necessarily mean it will make money. The assets of these Internet companies have indeed skyrocketed, but the money they spent on raising funds has brought no profits at all.
Their vistas still seemed so far out of reach. Many Internet companies have spent all the funds from venture capital and equity offerings, and are still losing money!
They use investors' money to acquire and merge other competitors in the same industry, accelerate the launch of their own new services, strive to penetrate into cross-industry areas, and work hard to promote their brands.
This seems to have entered a strange circle of Internet enclosures, and has also formed a novel Internet rule. But the bosses of all companies never consider why their companies are worth so much money? How can the company be worth hundreds of billions of dollars just based on Yahoo's products? How much revenue does their company make in a year
This seems to be a bottomless pit, who dares to invest in it
These annual and quarterly financial reports are also considered by many to be the real trigger of the Internet bubble and the inducement for large investment institutions to sell Internet technology stocks.
And there is another theory, that is the millennium bug. That is, a loophole in the algorithm will cause system chaos in many companies. In order to make up for this loophole, companies have to increase expenditures, exacerbating their financial pressure.
There are many opinions, with both supporters and opponents, but no matter what the reason is, the Nasdaq stock market began to fall, and the first to bear the brunt were network technology stocks.
Feng Yu has another algorithm, which is to calculate the real rate of return of Nasdaq stocks.
Since 1998, Nasdaq's real rate of return has been less than 3%, even lower than bonds, and even lower than the 6.5% rate of return that theoretically should have been achieved during such a boom.
Some researchers believe that all equity shares have a premium to varying degrees, with a premium of about 7%.
In other words, Nasdaq stocks are overvalued. Whether it's Microsoft, IBM or Dai Er, they all benefit from the boost of irrational exuberance.
Now, when the bubble bursts, they are also the first company to fall, and can even be said to be the leader.
…
The crazy decline of Nasdaq also caused the decline of New York Stock Exchange stocks. Many companies that obviously have nothing to do with it have been affected.
I don’t know where I heard the rumor, saying that the stock market is going to crash again, and Microsoft, IBM and other companies are unable to withstand it!
As a result, more people began to panic sell stocks, thus forming a vicious cycle.
The more people sell, the faster the stock price falls, and the faster the stock price falls, the more people sell.
In less than a week, the Nasdaq stock index fell nearly ten points, which was the largest drop in more than ten years.
Affected by this, stocks in major financial markets around the world have fallen, especially network technology stocks, which have fallen the most.
Paul Allen deeply regretted it at this time. If he had known that Microsoft's stock price would continue to fall, he would have cashed out some money. He still holds a lot of non-voting shares. Selling those will not affect his voice in the company.
What's wrong with investing is that you won't know that your assets have shrunk every day, right
However, this kind of day seems to have not ended yet.
Not only Microsoft, but also the boards of directors of many large companies such as IBM and Dai Er are meeting every day to study how to save their companies and prevent the company's stocks from continuing to fall like this.
Although the drop in stock price does not have much direct impact on the company's operations, it has a great impact on the company's brand and reputation, and it also has a great impact on shareholders who hold the company's shares. If the stock price falls, their assets will shrink!
They couldn't figure out why the dot-com bubble burst
(End of chapter)